MIRA INFORM REPORT
|
Report Date : |
18.04.2007 |
IDENTIFICATION DETAILS
|
Name : |
SHAKTI PUMPS [INDIA] LIMITED |
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Registered
Office : |
Plot No. 1, Sector A, Mhow Neemuch Road, Pithampur, District Dhar,
Madhya Pradesh |
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Country : |
India |
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Financials (as
on) : |
30.06.2006 |
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Date of
Incorporation : |
21.04.1995 |
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Com. Reg. No.: |
9327 |
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CIN No.: [Company
Identification No.] |
L29120MP1995PLC009327 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BPLS02081C |
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Legal Form : |
Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturers of Stainless Steel Submersible Pumps. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 440000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per
commitments. The company is doing steady business.
It can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered
Office/ Works : |
Plot No. 1, Sector A, Mhow Neemuch Road, Pithampur, District Dhar,
Madhya Pradesh, India |
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Tel. No.: |
91-7292-400361/ 400362/ 400363/ 400369/ 407044 |
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Fax No.: |
91-7292-252244/ 400371 |
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E-Mail : |
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Website : |
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Branch : |
Shakti Pumps – Turkey Pompa San Ve Dis Tic. Limited. Sti. Perpa Ticaret Merkezi A Blok, Kat 11 No.1328 Okmeydani, Istanbul,
Turkey |
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Tel. No.: |
GSM : 90-538-3910351 Tel. No.: 90-212-2202690 |
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Fax No.: |
90-212-2202693 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Manoharlal
Patidar |
|
Designation : |
Managing Director and Chairman |
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Name : |
Mr. Dinesh Patidar |
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Designation : |
Managing Director |
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Name : |
Mr. Sunil Patidar |
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Designation : |
Executive Director |
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Name : |
Mr. S. S. Raghuwanshi |
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Designation : |
Independent Director |
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Name : |
Mr. Lalit Garg |
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Designation : |
Independent Director |
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Name : |
Mr. P. L. Nene |
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Designation : |
Independent Director |
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Name : |
Mr. Ramesh Patidar |
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Designation : |
Additional Director |
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Name : |
Mr. Raj Kumar Jain |
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Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Lalit K Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
2438900 |
50.58 |
|
Indian Financial
Institutions |
-- |
-- |
|
Nationalized Banks |
-- |
-- |
|
Mutual Funds |
-- |
-- |
|
Foreign
Institutional Investors |
693960 |
14.39 |
|
FIIs |
100 |
-- |
|
Foreign
collaborators |
-- |
-- |
|
NRis |
2710 |
0.06 |
|
Other companies |
1059985 |
21.98 |
|
Individuals &
Others |
611132 |
12.67 |
|
Transit |
15113 |
0.31 |
|
Total |
4821900 |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacturers of Stainless Steel Submersible Pumps. |
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
|
Licensed
Capacity |
Actual
Production |
|
Submersible Pumps |
Nos. |
|
55000 |
20136 |
GENERAL INFORMATION
|
No. of Employees
: |
400 |
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Bankers : |
v State Bank of
Indore v State Bank Of
India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Saklecha & Gandhi Chartered Accountants, |
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Address : |
105, Man Heritage, 6/2 South Tukoganj, Near High Court, Indore –
452001, India |
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|
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Subsidiaries : |
Shakti Pumps Tur
Pompa San. Ve Tic Limited Spi Turkey' Sale-1.422 Million Investment 0.456
Million |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5500000 |
Equity Shares |
Rs. 10/- each |
Rs. 55.000
millions |
Issued & Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5002100 |
Equity Shares |
Rs. 10/- each |
Rs. 50.021
millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4821900 |
Equity Shares |
Rs. 10/- each |
Rs. 48.219
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
48.219 |
48.219 |
48.219 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
63.338 |
47.824 |
80.902 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
111.557 |
96.043 |
129.121 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
134.337 |
126.100 |
144.398 |
|
|
2] Unsecured Loans |
114.276 |
21.012 |
21.012 |
|
|
TOTAL BORROWING |
248.613 |
147.112 |
165.410 |
|
|
DEFERRED TAX LIABILITIES |
9.563 |
8.588 |
7.784 |
|
|
|
|
|
|
|
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TOTAL |
369.733 |
251.743 |
302.315 |
|
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|
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|
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APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
112.804 |
68.031 |
59.862 |
|
|
Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX
ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
127.797 |
137.222 |
153.400 |
|
|
Sundry Debtors |
112.582 |
57.980 |
99.109 |
|
|
Cash & Bank
Balances |
0.139 |
0.282 |
0.130 |
|
|
Other Current
Assets |
26.075 |
7.517 |
7.855 |
|
|
Loans &
Advances |
20.696 |
11.204 |
10.442 |
|
Total Current Assets |
287.289 |
214.205 |
270.936 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities & Provisions |
31.231 |
30.780 |
29.149 |
|
Total Current Liabilities |
31.231 |
30.780 |
29.149 |
|
|
Net
Current Assets |
256.058 |
183.425 |
241.787 |
|
|
|
|
|
|
|
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MISCELLANEOUS
EXPENSES |
0.871 |
0.287 |
0.666 |
|
|
|
|
|
|
|
|
TOTAL |
369.733 |
251.743 |
302.315 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
Sales Turnover |
410.683 |
477.305 |
495.186 |
|
|
Other Income |
(20.628) |
2.332 |
|
|
|
Total Income |
390.055 |
479.637 |
495.186 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
25.142 |
17.354 |
12.933 |
|
|
Provision for Taxation |
4.131 |
2.374 |
0.983 |
|
|
Profit/(Loss) After Tax |
21.011 |
14.980 |
11.950 |
|
|
|
|
|
|
|
|
Total Earnings |
NA |
238.000 |
120.764 |
|
|
|
|
|
|
|
|
Total Imports |
39.693 |
10.675 |
NA |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
12.631 |
8.146 |
|
|
|
Administrative Expenses |
7.331 |
5.571 |
|
|
|
Raw Material Consumed |
279.067 |
395.136 |
482.252 |
|
|
Salaries, Wages, Bonus, etc. |
14.927 |
11.498 |
|
|
|
Other Expenditure |
43.222 |
41.932 |
|
|
Total Expenditure |
357.178 |
462.283 |
482.252 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2006 (1st
Qtr.) |
31.12.2006 [2nd
Qtr.] |
|
Sales Turnover |
|
130.200 |
140.000 |
|
Other Income |
|
0.400 |
0.000 |
|
Total Income |
|
130.600 |
140.000 |
|
Total Expenditure |
|
111.600 |
121.700 |
|
Operating Profit |
|
19.000 |
18.300 |
|
Interest |
|
7.000 |
4.800 |
|
Gross Profit |
|
12.000 |
13.500 |
|
Depreciation |
|
2.300 |
3.000 |
|
Tax |
|
1.400 |
1.900 |
|
Reported PAT |
|
8.300 |
8.600 |
200609
Quarter 1
Notes
Net sales Includes Export Rs 80.254 million General Rs
49.980 million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
1.881 million Consumption of Raw Material Rs 91.051 million Staff Cost Rs 4.492
million Other Expenditure Rs 14.124 million Status of the Investors Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints received during the quarter Nil Complaints disposed
off during the quarter Nil Complaints unsolved at the end of the quarter Nil
Provision for Tax including Deferred Tax & FBT EPS is Basic & Diluted
1. The above results have been taken on record by the Board of Directors at
their meeting held on October 17, 2006. 2. The Company has only one segment
namely Submersible Pumps, hence the disclosure requirement of AS-17 Segment
Reporting issued by the Institute of Chartered Accountants of India is not
applicable.
200612
Quarter 2
Notes
EPS is Basic & Diluted Status of the Investors
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints received during the quarter Nil
Complaints disposed off during the quarter Nil Complaints unsolved at the end
of the quarter Nil 1. The above results have been taken on record by the Board
of Directors at their meeting held on January 27, 2007. 2. The Company has only
one segment namely Submersible Pumps, hence the disclosure requirement of AS-17
Segment Reporting issued by the Institute of Chartered Accountants of India is
not applicable. 3.A manufacturing company of energy saving widest range of
stainless steel submersible pumps in the world.
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity Ratio |
1.91 |
1.39 |
1.34 |
|
Long Term Debt-Equity Ratio |
1.15 |
0.41 |
0.25 |
|
Current Ratio |
2.12 |
1.63 |
1.54 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.17 |
4.97 |
5.57 |
|
Inventory |
3.10 |
3.28 |
3.35 |
|
Debtors |
4.81 |
6.08 |
4.12 |
|
Interest Cover Ratio |
2.29 |
1.98 |
1.51 |
|
Operating Profit Margin(%) |
12.78 |
8.76 |
9.49 |
|
Profit Before Interest And Tax
Margin(%) |
10.91 |
7.37 |
8.19 |
|
Cash Profit Margin(%) |
6.99 |
4.53 |
3.85 |
|
Adjusted Net Profit Margin(%) |
5.11 |
3.14 |
2.55 |
|
Return On Capital Employed(%) |
14.88 |
13.12 |
13.41 |
|
Return On Net Worth(%) |
20.24 |
13.33 |
9.75 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.155.00/- |
|
Low |
Rs.147.00/- |
LOCAL AGENCY FURTHER INFORMATION
History :
Pumps (India) was established in Jan.'82 as a partnership firm
in the name of Shakti Electrical Industries. The partnership firm was
reconstituted three times in 1986, 1990 and 1994, before being converted into a
public limited company in 1995. It was promoted by Manoharlal Patidar, Dinesh
Patidar and Sunil Patidar.
The company's unit was set up as a small scale unit in 1982 at Pithampur,
Madhya Pradesh, to manufacture submersible pumps with an installed capacity of
1500 pumps p.a. The unit received ISI mark for its products in 1991. Madhya
Pradesh Government (P H E D and irrigation departments) is the major consumer
of its products.
In 1995, the company undertook an expansion programme at its Pithampur plant to
increase the capacity of pumps from 1500 pa to 10,000 pa and that of control
panels from 800 pa to 8000 pa. It further proposed to undertake the manufacture
of monoblock pumps with an installed capacity of 10,000 pumps pa. It came out
with a public issue in Dec.'95 to part-finance the project.
During the Year 1998-99, the company was successful in obtaining an ISO 9002
Certification.
The company has obtained the privilege of manufacturing of entire motor pump
sets purely of stainless steel being the exclusive manufacturer in the whole
country in the year 1999-2000.
OPERATIONS:
During the year under
review the export sales in overseas market increased from Rs. 245.471 millions
to Rs.302.741 millions showing a growth of 23.33%.
Profit before Tax of
the Company for the year under review has also increased from Rs. 41.810
millions to Rs.52.255 millions showing a growth of 25%.
The decline in
domestic sales is due to the reason of lack of awareness of saving energy and
electricity power among domestic customers as our product is of energy saving
submersible pumps. Steps are being taken to increase domestic sales by making
aware customers of our power saving submersible pumps.
FUTURE OUTLOOK:
The company is
moving ahead for expansion of its activities as per the policy decisions of the
company. The Stainless Steel submersible Pumps are well acceptable in
international market as well as in domestic market because of awareness of the
people about saving of electricity which is main feature of our product. The
company is increasing its export every year by exploring of new international
market for its products. The company is setting up a new project in SEZ
Pithampur to expand its manufacturing and business activities. It is expected
that the SEZ Division will start its production in near future.
INDUSTRY STRUCTURE AND DEVELOPMENT
The industry is
registering a good growth for pump manufacturing industries taken up for the
products
OPPORTUNITIES AND
THREATS
There is significant
change in the outlook compared to last year. The company continues to enhance
opportunities for growth by focusing in introduction of innovated upgraded
existing products. The company faces the normal threats risks and concerns,
which are associated with competition from local and overseas manufacturers.
SEGMENT WISE
PERFORMANCE:
The company has only
one segment namely Submersible Pumps.
OUTLOOK
In current year the
company is continued of growing much faster in comparison to economy &
agriculture looking lo the present level of response and orders.
The Company's
outlook on overseas markets and domestic market are positive on account of its
strength on technology, cost, power conservation.
Fixed Assets :
Land, Building, Plant & Machinery, Furniture & Fixture, Vehicle,
Air Conditioner, Computer, Cellular and Building Under Expansion
Contingent Liabilities :
Contingent liabilities
are generally not provided for and are disclosed by way of notes to the
accounts.
A. Bank Guarantee Rs
.4.896 millions (Previous years Rs. 1.278 millions)
B. Outstanding
Letter of Credit Rs. 26.106 millions (Previous Year Rs.42.197 millions)
C. Excise Duty
demands of Rs. 0.479 millions for 2003-2004 appealed against but not provided
for accounts
WEBSITE DETAILS
The
Shakti saga, dates back to the year 1982. Like every other beginner they too
had a humble beginning. Weighing every opportunity, making the best of whatever
came to their way. But they had a dream that was big, restless urge to grow and
a determination that was strong as steel. They wanted to be recognized as one
of the most respected names in the manufacture of stainless steel submersible pumps.
Becoming
a Limited company in the year 1995 they became one of the few Indian Companies
catering to the International market. Today, Their brand Shakti, is a force to
reckon with. Owing their success to a strong product line and technology that's
at par with the best in International markets, Shakti Pumps (India) Private
Limited has carved a niche among quality conscious users around the globe.
Entering
a market already dominated by big names was always going to be tough. But this
greatest challenge facing them, turned out to be the biggest opportunity they
ever got. They endured, they believed, they delivered. Shakti Stainless Steel Submersible Pump became hot
property with those who demanded the best. Right from the first pump fabricated, they were clear about
one thing- Quality.
Today
they fabricate 4", 6", 8" 10" and 12" Submersible Pumps which are exported
to more that 40 countries around the globe. Confirming to NEMA standards the
pumps are available from 1m3 /h - 280m3 /h. Made completely of Stainless Steel including impellers and diffusers, the pump provides a maximum head of up to
2250 feet. With wide range domestic and industrial applications, Subject comes
across the most versatile range of Stainless
Steel Submersible Pumps.
Features
v
Electric
submersible pump sets of modular design, suitable
for under-water operations. For universal frt, all mounting dimensions of pumps
and motors are in accordance with NEMA standards.
v
Submersible Pumps- Stainless Steel construction of main hydraulic
component impellers and diffusers/bowl. For well size 4", 6", 8"
10" and 12".
v
Submersible Motors- Stainless Steel construction of motor shell.
Suitable for 380V/415V & 50 Hz electric supply. Can also designed for
different voltage/frequency combination of electric supply against specific
requirements. Available for well size 4", 6" and 8". Also
available in complete stainless steel construction.
The best
thing about quality is that inspires you to get better. At Shakti Pumps (India) Ltd., right from when they manufactured their first pump, they made sure that only the best
product rolled out of their stable. Today, two decades in to manufacturing pumps, they can proudly say that every pump bearing the stamp of Shakti is Quality to core.
Their
quality control department keeps a constant watch on the entire manufacturing
process starting from raw material procurement to every phase of assembly line,
testing, packaging etc. Research & Development under guidance of technical
experts is an on going process ensuring continuous improvement of the products.
They consider packing an art. Every packing is worked out as per
individual product profile, understanding the customer's requirement and
keeping safe shipment in view.
The Pumps and Motors are carefully wrapped
with shrinking films and then placed in corrugated tubes. Sea worthy packing
patterns are available to suit customer requirements with wooden boxes as well
as corrugated boxes with pallets.
Manufacturing
world class product definitely calls for an infrastructure that's at par with
the best in the world. At Shakti
Pumps(India) Ltd. they
are proud to possess one of the most advanced
assembly line. The entire factory is divided into diverse sections where
specialized stages of manufacture are given shape to. The entire process begins
at the machine shop where parts of the pump are forged into a single unit. The
motor section is also a specialized division where every unit goes through a
series of specialized operations.
The
company has equipped its tool room with hi-efficiency equipments that endows it
with capability to produce dies for intricate profiles with AutoCAD designing
facility. The Die - shop is equipped with sophisticated CNC machines, Wires
cut, Spark Erosion Machine, Milling Machine and Other Die-finishing facilities
manned by highly skilled manpower.
The
testing range of the factory is again a hi-tech zone where performance of each
pump is recorded and monitored through a computerized setup. Quality control
measures at every stage of production ensure that the final product is
faultless and ready to provide a high degree of performance.
Subject
plans to expand its presence by setting up two wholly owned subsidiaries in
Turkey and Australia. They also
plan to increase its direct presence in 10 more countries in coming years.
Furthermore,
looking towards the demands, Subject
has increased its capacity by buying some big assets near Sector III, Pithampur
Industrial Area as well Subject
has started new unit in SEZ[Special Economic Zone] Pithampur.
Now Subject own's 4 industrial setups,
which will operate and function for different product groups to supply its
products to domestic as well as International markets.
These 4
Industrial setups will help Subject
to cater to the domestic and international markets.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.97 |
|
UK Pound |
1 |
Rs.82.18 |
|
Euro |
1 |
Rs.56.91 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|